I've seen many posts on making labels, but I've had good luck with the following and wanted to post it up.
Label generation :: images setup in a Microsoft Word doc (table with transparent borders). I size the images so that I get four per page with no white spaces, so they are easy to cut out. So far I've used regular printer paper, but I may spice it up with other stock going forward. Still pretty cheap. Helps that it is a color printer.
Adhesive :: I setup a small spray area and use 3M spray mount to attach the labels to the bottles. Way easier than rubber cement because the spray mount is a one-time shot with no need for pressure.
Removal :: couple of scoops of Oxy Clean in a bucket. Soak for a couple of hours and it all comes off clean.